Over 45,000 Southern California grocery employees endorse a new labor agreement
In the bustling world of grocery retail, three of the biggest players - Kroger, Albertsons, and Ralphs - are currently embroiled in a significant three-year contract negotiation with the United Food and Commercial Workers (UFCW). The negotiations, which began in mid-2025, involve over 45,000 grocery workers across various banners, including Vons, Pavilions, and several others.
The UFCW has been pushing for improvements in wages, healthcare, staffing, and job security. Key provisions include a reduction in contract length from Kroger's preferred four-year terms to three years, substantial wage increases, and more robust staffing language to address understaffing issues. However, tentative agreements have been rejected, particularly in Indiana where 8,000 members of UFCW Local 700 voted down contract proposals in July 2025.
Workers have expressed dissatisfaction with the proposed contracts, citing the need for livable wages, fair staffing, and affordable healthcare. The rejections have led to calls for stronger union action. The negotiations have been marked by intense organizing and rank-and-file pressure, influencing contract terms significantly.
These contract fights occur amid Kroger's attempts to recover from a failed Albertsons merger and ongoing operational challenges such as understaffing and reliance on part-time labor. Worker dissatisfaction is also fueled by comparisons to better contracts in other local industries and a desire for substantive improvements rather than incremental or insufficient raises.
Meanwhile, a separate contract for grocery workers at Stater Bros., Gelson's, Super A, and El Super stores in Southern California is currently being negotiated. The contract for Ralphs, Albertsons, Vons, and Pavilions locations in Southern California has already been ratified, resulting from months of negotiations and the active involvement of thousands of Southern California grocery workers.
The agreement includes substantial wage increases, a new supplemental pension plan, higher health care benefit contributions, and faster health care eligibility for new hires. It also includes staffing language that involves the union in evaluating reasonable staffing levels for efficient store operation, employee health and safety, and quality customer service.
As the negotiations continue, both parties remain committed to finding a resolution that benefits all parties involved. The exact final terms remain under negotiation or pending ratification as of August 2025. The UFCW, with over 1.3 million workers in the United States and Canada, continues to fight for better wages, health benefits, retirement benefits, and improved customer service through staffing increases.
The UFCW's negotiations with Kroger, Albertsons, and Ralphs in the retail industry have focused on key areas like wages, healthcare, staffing, and job security, with proposals such as shorter contract lengths and substantial wage increases. Despite tentative agreements, some workers, like those from UFCW Local 700 in Indiana, have rejected the proposals.
The ongoing disputes in the grocery industry's finance sector, particularly in the context of Kroger's recovery from a failed merger and operational challenges, have been influenced by calls for livable wages, fair staffing, and affordable healthcare from the workers.
